So it looks like this may be on the way to happening, and will change one of the most storied names in business journalism, literally, and of course in many other ways. Canadian B2B giant Thomson and UK-headquartered business news agency and financial info firm Reuters have laid out the details of their merger talks….of course this is a very complex deal, much has still to be resolved and there can be no assurance that agreement will be reached, the two companies have warned. Full details here…the two companies laid out the rationale of the mega-deal:
— The combined group would be called Thomson-Reuters and the combined Thomson Financial unit and Reuters financial and media businesses would be called Reuters.
— $500 million of annual synergies expected to be achieved within three years.– Both companies’ primary stock market listings will be maintained. Each Reuters share would be entitled to 352.5 pence per share in cash and an equity participation based on an equalization ratio of 0.1600 Thomson shares for each Reuters share…this would value each Reuters share at 705 pence representing a premium of 43 percent to the closing share price of Reuters on May 3.
— Woodbridge, the Thomson family holding company, would own about 53 percent of Thomson-Reuters, other Thomson shareholders about 23 percent. and Reuters shareholders about 24 percent.
— The combined group would adopt the Reuters trust news principles aimed at safeguarding the independence of Reuters news.
— Thomson President and CEO, Richard Harrington, 60, will retire at the successful completion of the transaction. Reuters CEO, Tom Glocer, 47, would become CEO of the combined company.
— Reuters has 16,900 staff in 94 countries, including 2,400 editorial staff in 196 bureaux serving 131 countries. Reuters ordinary shares trade on the London Stock Exchange (RTR.L) and ADRs trade on NASDAQ (RTRSY.O).
— Thomson’s operational headquarters are in Stamford, Conn…its common shares are listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).